National Bank of Greece completes the Frontier transaction

Frontier represents a landmark transaction and a decisive step for NBG to soon deliver a mid-single digit NPE ratio. Specifically, the transaction (i) received two credit ratings, (ii) was not associated with a hive-down and (iii) is serviced by a servicer not arising from a carve from the bank itself. Frontier also constitutes a unique transaction in Greece from a capital perspective adding c.1.5ppts to NBG’s capital ratios. 

NBG retains 100% of the Senior notes and 5% of the Mezzanine and Junior notes, selling 95% of the Mezzanine and Junior notes to the consortium consisting of affiliates of Bain Capital Credit, Fortress Investment Group and doValue Greece.

Morgan Stanley & Co. International plc acted as financial advisor and arranger of the transaction, Clifford Chance LLP and Karatzas & Partners as international and local external legal counsel to NBG, respectively, Oliver Wyman as technical advisor while Cerved supported the Bank on Portfolio Business Plan preparation.